Int. Micro Econ

  1. What are the 4 tasks of Econ?
    • Measure
    • Explain
    • Predict
    • Guiding = > Policy
  2. What is positive economics?
    Shows a cause and effect relationship; what is; fact
  3. What is normative economics?
    What ought to be; "should"; based on value, judgment, opionion.
  4. What are the two objectives of the Simple Circular Flow model?
    To identify roles and flows.
  5. What are the 4 assumptions in the Simple Cicular Flow Model?
    • a) 2 sectors - households and firms
    • b) Households own all the resources
    • c) Firms carry out all the productions
    • d) 2 markets - a final goods and services & resource
  6. What are the determinates of Demand?
    Price, Income, Price of related goods, taste/preferance,...
  7. What are the determinates of Supply?
    Price, wages, Price of other imputs, technology, ...
Card Set
Int. Micro Econ
Econ 423